Question $1(30$ marks$)$

Briefly explain with not more than $60$ words $($and calculation, if any$)$ for each of the following parts that whether you agree or disagree with the statement.

a$)$ The minimum value of dividend payout ratio is $0\%.$

$(6$ marks$)$

b$)$ Money markets are markets for short$-$term funds such as stock.

$(6$ marks$)$

c$)$ Even if the share price of a common stock remains constant $($does not change over time$),$ an investor who has purchased the stock may still get a return rate which is larger than $0\%.$

$(6$ marks$)$

d$)$ You have bought $100$ shares of the common stock issued by Katy Corporation at $$20$ per share with a margin account. The initial margin is $60\%$ and the maintenance margin is $50\%.$ If you borrowed maximally, then your initial loan was $$800,$ and you would not receive a margin call when the share price decreases to $$15.$

$(6$ marks$)$

e$)$ Assume Jason Corporation pays $$3$ fixed dividend every $4$ months for the common stockholders $($at the end of April, August, and December$).$ If the stock price is $$100,$ then the dividend yield is less than $6\%.$

$(6$ marks$)$